The emerging battery industry is set to inject $27.3 billion into the Australian economy by 2030, double the value estimated just 18 months ago, according to a new report from the Future Battery Industries Cooperative Research Centre, Renew Economy reports.
“Forecast demand for batteries has increased by 64 per cent and forecast prices have increased by 35 per cent,” the report finds.
That spike in demand is bumping up the size of the potential returns: a diversified battery industry could deliver $16.9 billion and 61,400 jobs, while the mining sector tops that up with another $10.4 billion and 31,600 jobs.
And while that price hike looks concerning, caused by a critical shortage of key components, the per kilowatt hour (kWh) price will still be lower than today.
The report sees prices sinking below $US100/kWh ($150/kWh) in 2026 due to technology improvements, rising use of cheaper lithium-iron phosphate (LFP) cathodes, the emergence of cheaper chemistry and manufacturing scale.
“Three global shifts since 2020 have accelerated battery demand growth: intensified rivalry between the world’s largest economies for economic and technological leadership, the recent global energy crisis, and increased public and private pressure to accelerate the transition.”
Where Australia could carve out a real sphere of influence is in Asia, as India, Thailand and Indonesia are all moving to shore up new, non-China based supply chains.
The federal government is currently forming its National Battery Strategy, for which submissions closed on March 17.
The strategy is set to shape Australia’s future battery industries and inform initiatives such as Australian-made battery precinct in Queensland and a ‘Powering Australia Industry Growth Centre’.